Requirements for reissue rate Loan Policy premiums change
Effective August 1, 2015 two of the requirements for the application of refinance and subordinate mortgage title insurance premium rates to a Loan Policy will change.
For all transactions closing on or after August 1, 2015 the requirements that a) there has been no change in ownership since the recording of the Deed or existing Mortgage, and b) the new Mortgage describes the same property as in the Deed or existing Mortgage, have been deleted.
The new requirements are 1) that the new loan is made by all or some of the same persons shown as owners in the Deed or shown as mortgagors in the existing Mortgage, and 2) the new loan describes all or some of the same property as in the Deed or existing Mortgage.
The requirement that the Deed or existing Mortgage have been created within the past ten years remains unchanged.
New reduced reissue rate Loan Policy premiums for qualified 1-4 Family property
New reduced premium rates have been approved for refinances of qualified 1 to 4 unit residential property, . A 30% reduction applies to a refinance with the same or an affiliate of the holder of the existing Mortgage. A 15% reduction applies to a refinance NOT with the same or an affiliate of the holder of the existing Mortgage. Additional qualifications for the reduced rates are summarized below.
- the land is improved only by an owner occupied one to four family residential dwelling, condominium or cooperative apartment,
- the new loan is a refinance of an existing loan by replacement with a new loan or a new loan consolidated with an existing loan,
- the New Loan Policy is applied for at any time during the ownership of the property by the person or persons making the new loan,
- all of the same or some of same persons executing the new loan are the same as those persons who executed the existing loan being refinanced,
- the source of title into the parties who executed the loan being refinanced is the same as for the parties making the new loan, and
- the New Loan Policy describes the same property or less as is set forth in the loan being refinanced.
Note that the requirement that the Deed or existing Mortgage have been created within the past ten years does not affect the application of the reduced premium rates for refinances of qualified 1 to 4 unit residential property.
Please advise SMPR of all refinance and subordinate mortgage closings taking place on and after August 1, 2015 so the invoice at closing will reflect the appropriate premium.